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proximity

a next generation connection


Proximity Research Report

Verizon will lead a 4G Network market


The new 4G Network will offer greater interactivity and ad capability


By
Kyung Woo

Spring 2010


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Table of Contents

Executive Summary
Introduction: Smart phone Market research
The Limits of the 3G Network
New era of 4G network
When/ where the 4G network will be launched
What Clients can do with the new network
Recommendations
Attachment 1:
Attachment 2
References


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Executive Summary

Verizon Wireless has been archiving a dominant position in the U.S. mobile market with its impressive reputation. They are now moving to improve their service by upgrading from a 3G network to a 4G network quickly for better service than competitors. Most of Smartphone customers will desire to switch to a 4G network because of the limitations of the 3G network performance. The 3G network has limited upload and download speeds, and unstable enough in longtime networking. Mobile device user desires to their phones are fast, easy and useful, for using internet service and communication
Over the past few years, the 3G network market has limited the potential of ads making reaching Gen-Y difficult for advertisers. The new network will provide efficient speeds and present environment for ads. The clients of Proximity can reach Gen-Y consumers more efficiently through the 4G network. Clients need this report to understand the role Verizon's 4G network will perfectly bring new wave in the mobile market, and what the network will allow them to do with their ads.


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Introduction: Mobile Market Research

The Smartphone Market is one of the most competitive and potential markets in the world. "According to data collected by Wireless Intelligence, during the quarter ended Dec. 31 2009, 5.9 million net new subscribers signed up for wireless services, the highest number of new adds made during a three-month period in three years." The market consists of four major competitors: Verizon Wireless, AT&T, Sprint, and T-Mobile. The most mobile customers have committed to Verizon wireless because of their extensive coverage and wide selection of phones. Verizon Wireless leads the mobile market, but not by far. AT&T has shown a greater successful because of their exclusive I-Phone provide by apple corp. The I-phone is the most effective and favored Smartphone on the market. Many mobile customers have transferred to AT&T to purchase the I-Phone. "3.1 million IPhone account activations reported in the fourth quarter of last year — the second-ever highest quarterly total – of which more than a third were new AT&T subscribers." The remaining companies are trying to find ways to gain customers, while the top companies are taking to stay ahead of competition.





The limits of the 3G Network


· As gen-Y demands to download new and many applications, 4G connectivity could enable many new applications. Most Gen-Y Mobile device user desires to their phones are fast, easy and useful, for using internet service and communication. The 3G network has a minimum data rate of 2 Mega per sec, and a maximum data rate 21 megabits per second for stationary users. The 3G network is currently useful, but does have limitations. The 3G network:

• has limited upload and download speeds.

• is inefficient in streaming videos and audio.

• is showing unstable connection enough in longtime networking.


New era of 4G network


Overview
4G stands for

4G refers to the fourth generation of cellular wireless standards. It is a successor to 3G and 2G standards. The nomenclature of the generations generally refers to a change in the fundamental nature of the service. The first was the move from analogue (1G) to digital (2G) transmission. This was followed by multi-media support, spread spectrum transmission and at least 200 kbit/s (3G) and now 4G, which refers to all IP packet-switched networks, mobile ultra-broadband (gigabit speed) access and multi-carrier
transmission.
"The performance and capabilities of LTE will be unmatched in the marketplace, allowing customers to do things never before possible in a wireless environment." Verizon Wireless plans to give customers the nationwide coverage they want with the new technology called LTE (Long Term Evolution). The technology includes higher speeds, inherent global mobility, multi-media support, spread spectrum transmission and at least 200 kbit/s, IP packet-switched networks, mobile ultra-broadband (gigabit speed) access and multi - carry transmission. The 4G network will have the broadest geographic coverage that will offer global roaming across multiple networks.
The 4G network will have the most advanced capabilities compared to other mobile carriers. 4G will allow Verizon to stay ahead of the competition and offer the best network in the mobile market.

Comparison to 3G
· The speed - The 3G network has a minimum data rate of 2 Megabits per second, whereas the 4G has peak downlink speeds of 40 to 50 megabits per second (Mbps) and peak uplink speeds of 20 to 25 Mbps.
· The coverage - The new technology will allow Verizon to provide coverage to costumers inside buildings, which couldn't be achieved with the 3G network.
· Also, the 4G will truly enable video application on the downlink as well as uplink – including but not limited to video-sharing, surveillance, conferencing and streaming in higher definition than is possible with existing 3G technology today
· The user plane latency achieved in LTE is approximately 1/4th (one-fourth) corresponding latency in existing 3G technologies.
· It will allow support of multiple users in a time slot; in contrast, existing 3G technology performs one-dimensional scheduling, which limits service to one user for each timeslot.
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Features
· HIGHER DATA RATES: Verizon Wireless will use a 10 + 10 MHz implementation, which will create data rates of 5-12 Mbps in the forward link, and 2-5 Mbps in the reverse link. These LTE data rates are greater in the reverse and forward link than those supported by the existing 3G network. LTE will enable video application on the downlink and uplink that includes video-sharing, surveillance, conferencing and streaming. Clients can make ads more appealing by adding streaming videos.

LTE

The pre-4G technology 3GPP Long Term Evolution (LTE) is often branded "4G", but the first LTE release does not fully comply with the IMT-Advanced requirements. LTE has a theoretical net bitrate capacity of up to 100 Mbit/s in the downlink and 50 Mbit/s in the uplink if a 20 MHz channel is used - and more if Multiple-input multiple-output MIMO), i.e. antenna arrays, are used. Most major mobile carriers in the United States and several worldwide carriers have announced plans to convert their networks to LTE beginning in 2009. The world's first publicly available LTE-service was opened in the two Scandinavian capitals Stockholm and Oslo on the 14 December 2009, and branded 4G. The physical radio interface was at an early stage named High Speed OFDM Packet Access (HSOPA), now named Evolved UMTS Terrestrial Radio Access(E-UTRA).
Verizon Wireless has announced that it plans to augment its CDMA2000-based EV-DO 3G network in the United States with LTE. AT&T, along with Verizon Wireless has chosen to migrate toward LTE from 2G/GSM and 3G/HSPA by 2011.
LTE Advanced (Long-term-evolution Advanced) is a candidate for IMT-Advanced standard, formally submitted by the 3GPP organization to ITU-T in the fall 2009, and expected to be released in 2011. The target of 3GPP LTE Advanced is to reach and surpass the ITU requirements. LTE Advanced should be compatible with first release LTE equipment, and should share frequency bands with first release LTE.

WiMA

The Mobile WiMAX (IEEE 802.16e-2005) mobile wireless broadband access (MWBA) standard is sometimes branded 4G, and offers peak data rates of 128 Mbit/s downlink and 56 Mbit/s uplink over 20 MHz wide channels. The IEEE 802.16m evolution of 802.16e is under development, with the objective to fulfill the IMT-Advanced criteria of 1 Gbit/s for stationary reception and 100 Mbit/s for mobile reception.

UMB (Formerly EV-DO Rev. C)

UMB (Ultra Mobile Broadband) was the brand name for a discontinued 4G project within the 3GPP2 standardization group to improve the CDMA2000 mobile phone standard for next generation applications and requirements. In November 2008, Qualcomm, UMB's lead sponsor, announced it was ending development of the technology, favouring LTE instead. The objective was to achieve data speeds over 275 Mbit/s downstream and over 75 Mbit/s upstream.


When/ where the 4G network will be launched
Verizon plans on launching the network in two stages: Stage 1
Verizon Wireless will be the first in the world to launch the 4G network, starting with 25 to 30 selective cities in 2010, covering approximately 100M people. Verizon is now testing out the network now to work out some minor bugs. It has already been successful trailed in Boston and Seattle. The will not be confined to the U.S., instead it will be global. They have worked with key network operators including Vodafone and China Mobile to coordinate field trials outside the U.S.
Stage 2
Verizon hasn't said much about the second and final stage of the network. But, they have announced complete coverage in 2015. It will cover the entire lower 48 states plus Hawaii. As the network grows, its speed will increase too. The longer the network is up and running, the faster it will become.



What Clients can do with the new network
The technology itself offers clients several advantages. Clients can:
· Use streaming media at a much higher data rate. It will open several doors for creative ads, like HD broadcast, video calls, instant downloads, mobile TV, and more.
· Reach more Gen Y with the extensive 4G coverage and building penetration feature.
· Perform on a more secure network.






Recommendations


The business implication of Verizon alone having the only true nationwide 4G network. Clients will need to partner with them because they will be the 4G gatekeeper. Depending on location of business, in major cities or not - wait shorter or longer. It will not offer ads and as interactivity. Verizon will have the customer accounts, including their credit card information. And other U.S. carriers will switch to 4G by the end of 2012.
The 4G network is the mobile network of tomorrow. Verizon has invested 9.4 billions of dollars in the 4G network. Soon, the largest carrier will be offering the most advanced network. Slowly but surely, society will demand faster speeds, and expect more from the mobile carrier. All carriers will switch to this technology, and clients will experience a greater return on investment.

Timing is another important factor. Advertisers should invest in the new network to reach Gen Y in the future.




Attachment 1: Wikipedia Glossary of 4G Terms
10 + 10 MHz implementation
LTE
700 MHz spectrum
multipath and multiuser interference
latency
two-dimensional resource scheduling



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Attachment 2:

Attachment 3:









References
The following items are key sources for the report.

Agam Shah: Sprint to Make HTC's Evo 4G Phone Available in June– Thu May 13, 12:20 am ET: http://news.yahoo.com/s/pcworld/20100513/tc_pcworld/sprinttomakehtcsevo4gphoneavailableinjune_1
It explains that The Smartphone’s 4G connectivity could enable many new applications. There is increasing demand for rich-media applications on mobile devices, and 4G could provide the necessary bandwidth to meet those demands. It could also enable videoconferencing involving multiple people.


Reardon, Marguerite. Cnet Reviews. (Retrieved April 07, 2010 from):

http://reviews.cnet.com/8301-13970_7-10166622-78.html.



Verizon Expects 4G Launch Next Year (2009, Feb. 18).
This article discusses Verizon's highly anticipated 4G coverage launch that is schedule for next year. Verizon is now testing out the network now to work out some minor bugs. Reardon says that they will have the network up in running in 25 to 30 markets throughout the United States, and they except to fully cover our nation in 2015. The article continues by discussing the 4G download speeds, which is substantially faster than the 3G. Finally, the article concludes by discussing Verizon anticipation of a customer support problem.


Verizon Wireless. (RetrievedApril, 12, 2010)
Verizon Wireless LTE Network (2009).Verizon Wireless official website. From:
https://www.lte.vzw.com/AboutLTE/VerizonWirelessLTENetwork/tabid/6003/Default.aspx .

According to the article was retrieved on Verizon's official website. Verizon states the features of the 4G network, and explains how that differs from their older network. Verizon brings a lot of hype to the network by saying that it will allow customers to do things that were impossible before in a wireless environment. They continue by discussing the network's higher data rates, coverage, multipath, mobility, power performance, latency, user support, security, development and worldwide roaming.


Tricia Duryee, (On Monday May 17, 2010, 5:04 pm EDT)

Verizon Says 4G Phones Are Coming In May 2011: http://finance.yahoo.com/news/Verizon-Says-4G-Phones-Are-paidcontent-1187439917.html?x=0&.v=1

This article shows that Verizon Wireless CEO Lowell McAdam said at the Reuters Global Technology Summit in New York that the company won’t be ready to launch phones until May 2011. At that time, it envisions having at least five 4G handsets available. He said the phones will likely be from Motorola (NYSE: MOT), HTC, LG (SEO: 066570) and RIM (NSDQ: RIMM). In the meantime, many of those same players with the addition of Samsung will build tablets, running Google’s Android software that could be ready as soon as the fourth quarter.



Stephen Lawson, IDG News (May 11, 2010 3:30 pm) http://www.pcworld.com/article/196058/verizon_shows_lte_running_at_85m_bps.html?tk=rss_news Verizon Shows LTE Running at 8.5M Bps it analysis that the 4 G as possible fast as that the video posted Tuesday shows what appears to be a real speed test on a laptop in a pizza restaurant in Newton Center, Massachusetts, near Boston University. The result displayed is 8.55M bps downstream and 2.80M bps upstream, going over the Internet to Los Angeles. Next to that laptop is another one using 3G, which shows speeds of 2.21M bps downstream and 866K bps upstream.